John Mack, chief executive and chairman of US investment bank Morgan Stanley, will receive a base salary of $800,000 (â¬668,000) next year. The news comes a day after the bank said he will receive a stock bonus of $11.5m for his first five months on the job.

The bank said that each of these staff "is anticipated to be a named executive officer for 2005."

Morgan Stanley has also entered into new contracts with Chammah, Shear and Chenevix-Trench.

Last month Mack and Cruz set the tone for managing and executive directors at the bank by signing new contracts that extend their notice periods. The latest agreements increase their notice from one to six months and reaffirm restrictive covenants, including non-solicitation of clients for a further six months.

In addition, Paul Wirth, who was recently appointed principal accounting officer in addition to his existing position as global controller, will receive $250,000. David Moser, the former principal accounting officer, will retain a senior position in the bank.